Business Studies Project Nw 1

8/4/2019 Business Studies Project Nw 1

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BUSINESS STUDIES

PROJECTON

DR.REDDY’S By

WANDAP

GOKUL

VINAYAK

HUSAIFA



4.0 COMPANY PROFILE

TYPE PUBLIC

TRADED AS NSE:DRREDDY

BSE:500124

NYSE:RDY

NASDAQ:RDY

INDUSTRY PHARMACEUTICALS

FOUNDED 1984

HEADQUARTERS HYDERABAD,ANDHRA PRADESH

KEY PEOPLE ANJI REDDY,CHAIRMAN

GV PRASAD,CEO

REVENUE $1.565 BILLION(2010)

NET INCOME $23 MILLION(2010)

EMPLOYEES 13,455 (2010)



4.1 NATURE OF BUSINESS

As a fully integrated pharmaceutical company, our purpose is to provide affordable andinnovative medicines through our three core businesses:

Pharmaceutical Services and Active Ingredients, comprising our Active Pharmaceuticalsand Custom Pharmaceuticals businesses;

Global Generics, which includes branded and unbranded generics; and

Proprietary Products, which includes New Chemical Entities (NCEs), DifferentiatedFormulations, and Generic Biopharmaceuticals.

Our products are marketed globally, with a focus on India, US, Europe and Russia. Dr.Reddy’s conducts NCE research in the areas of metabolic disorders, cardiovascular indications, anti-infectives and inflammation.

Their strong portfolio of businesses, geographies and products gives them an edge in anincreasingly competitive global market and allows them to provide affordable medication topeople across the world, regardless of geographic and socio-economic barriers.



4.2 OBJECTIVES

DR.REDDY’S is aimed at providing affordable and innovative medicines for healthier

life.The high cost of medicines puts them out of the reach of millions of people who

desperately need them. As a global pharmaceutical company, dr.reddys take the responsibility

to help alleviate the burden of disease on individuals and on the world. Through their globalgenerics business, they provide high quality, lower cost alternatives to innovator drugas.

Their wide range of products bring hope and health to people around the globe

Despite the great advances of medicine science, there are still far more diseases for which

there are no cures or no satisfactory treatments. At Dr. Reddy’s they believe in innovation

and research processes. This helps in finding solutions for unmet or inadequately met medical

needs. In addition, custom pharmaceutical services business works with innovator companies

and emerging biotech firms to accelerate the development of new molecules, while lowering

research costs.



4.3 OPERATIONS

In 1986, Reddy's started operations on branded formulations. Within a year Reddy's had

launched Norilet, Reddy's first recognized brand in India. But, thanks to its superior processtechnology, Reddy's scored a big success with Omez, its branded omeprazole – ulcer and

reflux oesophagitis medication – launched at half the price of other brands on the Indian

market at that time.

Within a year, Reddy's became the first Indian company to export the active ingredients for

pharmaceuticals to Europe. In 1987, Reddy's started to transform itself from a supplier of

pharmaceutical ingredients to other manufacturers into a manufacturer of pharmaceutical

products.

THE PASSAGE FROM INDIA:

1. First it moved into Russia, forming a joint venture with the country's biggest

pharmaceuticals producer Biomed in 1992,

2. In 1993, Reddy's entered into a joint venture in the Middle East and created two

formulation units there and in Russia..

3. Dr. Reddy's Research Foundation was established in 1992 and dedicated to research

in area of new drug discovery.

4. Reddy's international marketing successes were built on a strong manufacturing base

which itself was a result of inorganic growth through acquisition of international and

national facilities.

5. By 1997 Reddy's out-licensed a molecule for clinical trials to Novo Nordisk,

a Danish pharmaceutical company.

6. In December 2000, Reddy’s had undertaken its first commercial launch of a generic

product in the USA, and its first product with market exclusivity was launched therein August 2001.

7. In 2001 Reddy’s completed its US initial public offering of $132.8 million American

Depositary Receipts issue and also listed on the New York Stock exchange.

8. In 2002, Reddy’s started its European operations by acquiring two pharmaceutical

firms in the UK. BMS & MERIDIAN

9. In 2003 Reddy’s also invested US$. 5.25 million in equity capital of Bio Sciences ltd.

http://en.wikipedia.org/wiki/Middle_East

http://en.wikipedia.org/wiki/Inorganic_growth

http://en.wikipedia.org/wiki/Clinical_trial

http://en.wikipedia.org/wiki/Novo_Nordisk

http://en.wikipedia.org/wiki/Denmark

http://en.wikipedia.org/wiki/American_Depositary_Receipt


http://en.wikipedia.org/wiki/New_York

http://en.wikipedia.org/wiki/Stock_exchange

http://en.wikipedia.org/wiki/UK

http://en.wikipedia.org/wiki/Ownership_equity

http://en.wikipedia.org/wiki/Biotechnology

http://en.wikipedia.org/wiki/Biotechnology

http://en.wikipedia.org/wiki/Ownership_equity

http://en.wikipedia.org/wiki/UK

http://en.wikipedia.org/wiki/Stock_exchange

http://en.wikipedia.org/wiki/New_York



http://en.wikipedia.org/wiki/Denmark

http://en.wikipedia.org/wiki/Novo_Nordisk

http://en.wikipedia.org/wiki/Clinical_trial

http://en.wikipedia.org/wiki/Inorganic_growth

http://en.wikipedia.org/wiki/Middle_East



10. In 2004, Reddy’s acquired Trigenesis Therapeutics Inc; the US based private

dermatology company. This acquisition gave Reddy’s access to certain products and

proprietary technologies in dermatology segment

11. In March 2006, Dr. Reddy’s acquired Betapharm Arzneimittel GmbH from 3i for EUR 480 million. This is one of the largest-ever foreign acquisitions by an Indian

pharmaceutical company. Betapharm isGermany’s fourth-largest generics

pharmaceuticals.

12. As on 2006, Dr. Reddy’s Labs crossed US $500 M in revenues flowing from

segments such as APIs, Branded Formulations and Generics with the former two

segments accounting for almost 75% of revenues. It deals in and manages all the

processes, from the development of the API to the submission of finished dosage

dossiers to the regulatory agencies.

PHARMA SERVICES & ACTIVE INGREDIENTS

6 FDA-inspected plants in INDIA

1 Cytotoxic facility

REVENUE BREAK UP OF DR.REDDY'S

GEORAPHY WISE

Rest of the World

India

North America

Russia & CIS

Europe

http://en.wikipedia.org/wiki/Dermatology

http://en.wikipedia.org/wiki/Germany



http://en.wikipedia.org/wiki/Dermatology



1 FDA-inspected plant in Mexico

1 FDA-inspected plant in Mirfield, UK

3Technology development centres(2 in Hyderabad, INDIA; 1 in Cambridge, UK)

PRODUCT DEVELOPMENT

Integrated Product development Capabilitiesthat includes API development,Formulations development and analytical

development skills.

One Integrated Product developmentfacility in Hyderbad, INDIA.

GLOBAL GENERICS

6 Formulation plants in INDIA(1 USFDA inspected)

1 USFDA inspected plant in USA

NEW CHEMICAL ENTITIES

Conducts research in the areas of metabolicdisorders, cardiovascular indicationsand Cancer.

BIOLOGICS



Biologics development center

GMP production & E coli and mammalian cell platforms

MARKETING STRATEGY

1. Optimal operating system in which operations, product development and marketing &

sales are fully integrated.

2. Operations and the supply chain are aligned to ensure high availability, pull based

replenishment of products at the retail level and superior inventory turns to the

customers.

3. This advantage is combined with a highly effective prescription generation detailing

effort.

4. Globally synchronized supply chain and a comprehensive Information technology

platform help assure customers of timely delivery and superior inventory turns.



4.4 TARGET MARKET EQUATION

Targets mainly cancer,cardiovascular,gastro-intestinal patients

They also focus on class of people i.e. lower,middle & high income groups.

ASIA,EUROPE,USA,MIDDLE EAST

COMPANY STORES

HOSPITAL,CLINICS,PHARMACIES

ALL INCOME GROUPS



FUTURE PLANS

LEVERAGING THE BETAPHARM ADVANTAGE

Having acquired Betapharm, one of the fastestgrowing generic companies in Germany overthe past five years, Dr. Reddy’s aims at leveraging this strategic investment to evolve into amid-sized global pharmaceutical company and command a significant presence in all themajor pharmaceutical markets. It hopes to work in synergy with Betapharm, so that the twocompanies augment their market shares in the German generics market.Through thisacquisition,

Dr. Reddy’s aims to increase its revenues substantially and improve its operating margins.

Business Studies Project Nw 1

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